On July 15, just a few days before the Microsoft-CrowdStrike global tech outage caused by a corrupted anti-virus update (or so we are told), CrowdStrike Chief Security Officer Shawn Henry sold 4,000 shares of CrowdStrike Holdings Inc (NASDAQ: CRWD), a recent SEC filing shows.
After the sale, Henry now owns 183,091 shares of the company, which specializes in cloud-delivered protection of endpoints, cloud workloads, identity and data, according to Yahoo! Finance. CrowdStrike exists to prevent the types of breaches that occurred over the weekend with the crippling of global tech platforms.
Over the past year, Henry unloaded 85,986 shares of CrowdStrike at various intervals. During the same time period, Henry did not make a single purchase of CrowdStrike shares.
Henry is not the only person at CrowdStrike who followed this same MO. A total of 48 insiders at CrowdStrike sold shares over the past year. Not a single one of them made any share purchases during the same time period.
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Are CrowdStrike insiders doing insider trading?
The day of Henry's share sale, the price of a CrowdStrike share was $371.32, which gives the company a market cap of $89.81 billion. The company's price-to-earnings ratio is an astounding 696.32, which is significantly higher than the industry median of 27.16.
CrowdStrike stock's GF value is estimated at around $346.82, leading to a price-to-GF-Value ratio of 1.07. In layman's terms, the stock is considered by the markets to be Fairly Valued.
Those who hold CrowdStrike shares may want to take note of these routine stock sales from Henry and other insiders who are slowly offloading their shares and not buying any more of them. What does this mean for the future of CRWD's stock price?
After the global outage, CRWD's price took a big dip of around 11 percent, prompting infamous ARK Invest CEO Cathie Wood to swoop up $12 million in shares.
The CrowdStrike update "glitch" affected tens of millions of Microsoft Windows users, including at airports, hospitals, banks and retailers. The effects of the outage were still being felt on June 22, the start of the following week.
Wood's ARK Next Generation Internet ETF currently holds $1.45 billion in assets with CRWD now making up two percent of the fund. The ARK Fintech Innovation ETF purchased CRWD as well, which now makes up 1.3 percent of its $893.5 million portfolio.
Though Wood's two ETF have declined substantially since their February 2021 peaks, Wood is reportedly buying up stocks she believes in with the hope that they will eventually bounce back, save for a market crash.
Wall Street ended up downgrading CRWD's rating while slashing price targets, which drove the stock's price down another 12 percent.
Microsoft, meanwhile, released a recovery tool to help IT admins repair Windows machines that were impacted by the update failure.
According to The Verge, the tool creates a bootable USB drive that IT admins can use to quickly recover machines that were damaged and lost files necessary for their operation.
Millions of Microsoft customers experienced the dreaded "Blue Screen of Death" errors preventing their machines from booting up properly. Rebooting damaged PCs multiple times will cause most of them to automatically receive the necessary update, but some machines can only be fixed, reports indicate, by manually booting them into Safe Mode and deleting the corrupted CrowdStrike update file.
More related news about financial crimes in broad daylight can be found at Corruption.news.
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